Q3 Presentation 2012 24 October, 2012 Disclaimer This - PDF document

Q3 Presentation 2012 24 October, 2012

Disclaimer • This presentation has been prepared by Duni AB (the “Company”) solely for use at this investor presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. • This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended. • This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. • The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. • No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 2

2012 Q3 Highlights • Net sales SEK 849 m (917) • Professional affected mainly by weak EUR • Underlying operating – Volume declined by some 3% primarily reflecting a soft market in combination with income SEK 63 m (98) less invoicing days in September (start of Christmas season). • Underlying operating – Negative currency effects due to weak EUR. margin 7.4% (10.7%) • Consumer - improved sales trend – Deliveries to new major accounts started during the quarter. – Roll out initially influencing EBIT negatively. • Tissue – Low capacity utilization main explanation for weak result contrary to a strong quarter last year. – Test runs for new qualities. • Cash flow remains strong, driven by normalized capital expenditure and activities to bring down seasonal stock level.

Market Outlook • HORECA market long-term growing in line or slightly above GDP – Positive eating out trend. – Higher growth in take-away sector. • Negative macro statistics in majority of markets translates into softer demand. – European debt crises still creates uncertainty regarding economic recovery. – Key market Germany now facing negative growth figures for HoReCa. • Pulp and energy lower than last year however input material for traded goods remain on high level. 4

HoReCa Sales development Germany (July 2012) Source: destatis 5

Restaurant Sales Development, Sweden (Aug 2011 – Aug 2012)  +5.4% in volume in Aug and +5,4% in value. 6

Business Areas

Professional –Lower sales and EBIT mainly impacted by currency Sales and EBIT 1) Geographical split – sales Q3 2012 Net sales Q3 2012 Q3 2011 Growth Growth at fixed Professional exchange 3 000 16% rates 14% 2 500 12% Nordic 140 152 ­ 7.9% ­ 7.2% 2 000 SEK m illio ns 10% Central 1 500 8% Europe 375 417 ­ 10.1% ­ 2.6% 6% 1 000 South & East 4% 500 Europe 111 119 ­ 6.7% 0.8% 2% 0 0% Rest of the 2008 2009 2010 2011 LTM 2012 World 9 8 12.5% 12.5% Sales EBIT Margin TOTAL 635 696 ­ 8.8% ­ 3.1% • Loss of low end business in Denmark and Sweden impacted Nordic. Discontinued contracts in UK impacting Central Europe while development in Germany follows overall market trend. • Russia main growth driver for South and East, while Italy and Spain hurt by economic recession. • Evolin roll out continues. 1) Excluding non-recurring costs and market valuation of derivatives 8

Evolin Campaign 9

Consumer – Positive trend with growth in Central Region Sales and EBIT 1) Geographical split - sales Q3 2012 Net sales Q3 2012 Q3 2011 Growth Growth at fixed Consumer exchange rates 1 000 6% 4% Nordic 15 16 ­ 6.3% ­ 6.3% 800 Central 2% Europe 84 90 ­ 6.7% 1.1% SEK m illio ns 600 0% South & East Europe 2 4 ­ 50.0% ­ 50.0% ­ 2% 400 Rest of the ­ 4% World 0 0 0.0% 0.0% 200 ­ 6% TOTAL 101 110 ­ 8.2% ­ 1.6% 0 ­ 8% 2008 2009 2010 2011 LTM 2012 • Stagnating market in grocery retail trade. Sales EBIT Margin • Central region positively impacted by implementation of new accounts. Roll out estimated to be finalized by year end. 1) Excluding non-recurring costs and market valuation of derivatives 10

Tissue – Low capacity utilization Sales and EBIT Sales m ix Q3 2012 External 600 14% 46% 12% 500 10% 400 8% 300 6% Internal 200 4% 54% 100 2% 0 0% 2008 2009 2010 2011 LTM 2012 • Negative absorption effects from avoidance of stock build up and test runs . Sa les EBIT Ma r gin • Sales on par with last year. 11

Financials 12

Operating Margin 7.4% Q3 Q3 YTD YTD Q3 FY SEKm 2012 2011 2012 2011 LTM 2011 Net sales 849 917 2 638 2 744 3 701 3 807 Gross profit 207 248 678 716 993 1 031 Gross margin 24.3 % 27.1 % 25.7 % 26.1 % 26.8 % 27.1% Selling expenses ­ 97 ­ 105 ­ 327 ­ 332 ­ 436 ­ 441 Administrative expenses ­ 39 ­ 43 ­ 122 ­ 128 ­ 166 ­ 172 R&D expenses ­ 5 ­ 7 ­ 20 ­ 21 ­ 29 ­ 30 Other operating net ­ 4 4 ­ 3 9 ­ 11 0 Operating income (reported) 62 98 207 244 350 388 Non ­ recurring items 1) 1 0 6 ­ 9 ­ 13 ­ 16 Operating income (underlying) 63 98 212 253 363 404 Operating margin (underlying) 7.4 % 10.7 % 8.1 % 9.2 % 9.8 % 10.6 % Financial net ­ 3 ­ 8 ­ 20 ­ 20 ­ 29 ­ 30 Taxes ­ 11 ­ 26 ­ 46 ­ 61 ­ 83 ­ 98 Net income 47 63 140 163 238 261 Earnings per share 1.01 1.34 2.98 3.46 5.07 5.54 1) Restructuring costs and market valuation of derivatives 13

Quarter affected by FX effects and lower capacity utilization Q3 Q3 YTD YTD Q3 FY 2012 2011 2012 2011 LTM 2011 SEKm Net sales 635 696 1 959 2 016 2 709 2 766 Professional Operating income 1) 77 93 228 237 349 357 Operating margin 12.1% 13.3% 11.6% 11.7% 12.9% 12.9% Net sales 101 110 354 403 563 612 Consumer Operating income 1) ­ 12 ­ 5 ­ 13 ­ 3 11 21 Operating margin ­ 11.8% ­ 4.4% ­ 3.8% ­ 0.8% 2.0% 3.4% Net sales 112 111 325 324 429 428 Tissue Operating income 1) ­ 2 10 ­ 2 20 3 25 Operating margin ­ 2.2% 9.2% ­ 0.8% 6.1% 0.7% 5.9% Net sales 849 917 2 638 2 744 3 701 3 807 Duni Operating income 1) 63 98 212 253 363 404 Operating margin 7.4% 10.7% 8.1% 9.2% 9.8% 10.6% 1) Excluding non-recurring cost and market valuation of derivates 14

Strong Cash Flow: reduced stock building and lower capex Q3 Q3 YTD YTD Q3 FY 2012 2011 2012 2011 LTM 2011 SEKm EBITDA 1) 90 125 296 333 473 511 Capital expenditure ­ 21 ­ 58 ­ 87 ­ 177 ­ 287 ­ 377 Change in; Inventory ­ 20 ­ 66 ­ 24 ­ 92 31 ­ 37 Accounts receivable 11 38 29 ­ 23 16 ­ 36 Accounts payable ­ 3 4 ­ 19 ­ 4 ­ 23 ­ 8 Other operating working capital 27 26 ­ 1 46 ­ 23 23 Change in working capital ­ 15 3 ­ 15 ­ 74 1 ­ 58 Operating cash flow 84 70 194 83 187 76 1) Excluding non-recurring costs and market valuation of derivatives 15

Net Debt at all time low for Q3 SEKm Q3 2012 Q3 2011 FY 2011 Goodwill 1 199 1 199 1 199 Tangible and intangible fixed assets 870 728 888 Net financial assets 1) 210 241 210 Inventories 481 534 470 Accounts receivable 604 670 663 Accounts payable ­ 270 ­ 315 ­ 302 Other operating assets and liabilities 3) ­ 284 ­ 323 ­ 300 Net assets 2 810 2 734 2 827 Net debt 740 755 745 Equity 2 070 1 979 2 082 Equity and net debt 2 810 2 734 2 827 ROCE 2) 14% 17% 17% ROCE 2) w/o Goodwill 26% 32% 29% Net debt / Equity 36% 38% 36% Net debt / EBITDA 2) 1.6 1.5 1.5 1) Deferred tax assets and liabilities + Income tax receivables and payables 2) Excluding non-recurring costs and market valuation of derivatives 3) Including restructuring provision and derivatives 16